SteelMint’s daily steel billet index is assessed at INR 55,100/tonne (t) (-INR 900) exw-Raipur on 3 May 2022.
About 2,400 tonnes (t) of transactions in billets were recorded by SteelMint today as against 6,500 t on 2 April.
The billet index plummeted on account of lower bids due to poor offtake of finished steel products, which exerted pressure on billet prices across regions.
In addition, a significant decline in steel prices in Punjab has turned market sentiments sluggish, resulting in limited enquiries and a fall in offers in today’s trade.
Rationale –
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) – Four trades in the range of INR 55,000-55,500/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 55,210/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 55,500/t was also recorded at 2:00 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 55,036/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 55,123/t, rounded to INR 55,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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